Tag Archives: Sanctions

Rouhani says Iran will respond to any new U.S. sanctions

FILE PHOTO: Iran's national flags are seen on a square in Tehran February 10, 2012. REUTERS/Morteza Nikoubazl/File Photo

BEIRUT (Reuters) – Iran will reciprocate if the United States imposes new sanctions on it, president Hassan Rouhani said on Wednesday according to state media, casting further doubt over the outlook for the 2015 Iran nuclear accord.

The U.S. House of Representatives voted on Tuesday to slap new sanctions on Iran, Russia and North Korea, although it was unclear how quickly the bill would make its way to the White House for President Donald Trump to sign into law or veto.

State media quoted Rouhani as citing a verse from the Koran saying: “If the enemy puts part of their promises underfoot then we will also put part of it underfoot. And if they put all of their promises underfoot then we will put promises underfoot.”

But he added: “The Koran also advises that if enemies are really pursuing peace and want to put enmity aside and act appropriately toward you, then you should do the same.”

He said that parliament would take the initial steps in responding to any U.S. moves and that any necessary further steps would also be pursued.

On Tuesday, Trump issued a veiled threat against Iran, warning it to adhere to the terms of the 2015 nuclear deal it signed together with world powers or else face “big, big problems.”

A week after certifying Iran as complying with the agreement negotiated by Democratic President Barack Obama, Trump has made it clear that he remains extremely wary of Tehran.

The Iranian side appears equally wary of Washington, with a senior Revolutionary Guards commander issuing a similar threat in return on Wednesday.

“The Trump government, more than before, should be cautious and precise with their military approach in the Islamic revolution environment,” Brigadier General Masoud Jazayeri, deputy chief of staff of Iran’s armed forces was quoted by the Tasnim news site as saying on Wednesday.

“We will confront any American mischief with a response that will make them sorry,” he said.

The head of the Guards was quoted as saying last week that Washington should move its bases and avoid “miscalculations” over new sanctions against Tehran. The United States has bases in Qatar and Kuwait across the Gulf from Iran, while the U.S. Fifth Fleet is based in nearby Bahrain.

(Reporting by Babak Dehghanpisheh; Editing by Hugh Lawson)

U.S. likely to target more Chinese entities over North Korea ‘fairly soon’: official

FILE PHOTO: North Korean soldiers chat as they stand guard behind national flags of China (front) and North Korea on a boat anchored along the banks of Yalu River, near the North Korean town of Sinuiju, opposite the Chinese border city of Dandong, June 10, 2013. REUTERS/Jacky Chen

By David Brunnstrom

WASHINGTON (Reuters) – New U.S. sanctions aimed at curbing North Korean’s weapons programs, including measures aimed at Chinese financial institutions, can be expected “fairly soon,” a senior U.S. official said on Tuesday.

Asked when such sanctions could be expected and whether they could come within 30 days, Susan Thornton, the acting assistant secretary of state for East Asia, told a Senate sub-committee hearing:

“We have been working on coming up with a new list of entities that we think are violating … I think you’ll see something fairly soon, yes.”

Thornton said the United States would prefer to cooperate with China in going after entities doing business with North Korea in violation of U.N. sanctions.

“But we are perfectly prepared to act on our own,” she said.

“I think the Chinese are now very clear that we’re going to go after Chinese entities if need be, if we find them to be in violation, and if the Chinese feel they can’t cooperate in going after those targets.”

Thornton also said Washington was still considering whether to add North Korea back to the U.S. list of state sponsors of terrorism, from which it was removed in 2008 in exchange for progress in denuclearization talks.

“We are reviewing that issue right now … We are looking at the issue of designation,” she said, adding that she could not give a time frame for a decision.

Thornton said the United States had offered customs assistance to China to help stem illicit trade over its border with North Korea. “We are working on that with them, as are some of our like-minded allies in the region,” she said.

She said sanctions had affected North Korea’s ability to get materials for its weapons programs, but had not slowed its missile testing, as a lot of the production for this program was now indigenous.

“We are continuing to talk to China about that,” she said. “We’re continuing to try to impinge on sources of, particularly, hard currency, financing, but … it’s become harder and harder to stop this kind of activity in North Korea.”

U.S. officials said on Tuesday they had seen increased activity at a site in the western city of Kusong that could be preparations for another missile test within days.

U.S. officials told Reuters this month the Trump administration could impose new sanctions on small Chinese banks and other firms doing business with Pyongyang within weeks.

China’s Ambassador to Washington Cui Tiankai said on Tuesday secondary sanctions on Chinese firms were “unacceptable” and had “severely impaired” cooperation on North Korea.

(Reporting by David Brunnstrom and Matt Spetalnick; Editing by James Dalgleish)

North Korea could carry out missile test soon: U.S. officials

A North Korean flag flutters on top of a tower at the propaganda village of Gijungdong in North Korea, in this picture taken near the truce village of Panmunjom, South Korea July 19, 2017. REUTERS/Kim Hong-Ji

WASHINGTON (Reuters) – U.S. officials said on Tuesday they have seen increased North Korean activity that could be preparations for another missile test within days.

The officials, speaking on condition of anonymity, said that over the past week intelligence has spotted equipment, possibly for launching an intercontinental ballistic missile (ICBM) or an intermediate-range missile, moving into a site in the western city of Kusong.

Earlier this month, reclusive North Korea, which regularly threatens to destroy the United States and South Korea, said it had conducted its first test of an ICBM and mastered the technology needed to deploy a nuclear warhead via the missile.

Pyongyang’s state media said the test verified the atmospheric re-entry of the warhead, which experts say may be able to reach the U.S. state of Alaska.

However, the vice chairman of the U.S. Joint Chiefs of Staff recently said the July 4 test stopped short of showing North Korea has the ability to strike the United States “with any degree of accuracy.”

The Washington Post reported on Tuesday that the Defense Intelligence Agency (DIAL), the Pentagon spy agency, has assessed that North Korea will be able to field a nuclear-capable ICBM by next year, earlier than previously thought.

According to two U.S. officials, however, some other analysts who study North Korea’s missile program do not agree with the DIAL assessment.

“DIA and the South Koreans tend to be at the leading edge of estimates on North Korea’s military programs, and that’s understandable,” said one of the U.S. officials, who both agreed to speak only on the condition of anonymity. “There is no question that the DPRK has moved further and faster with its effort to develop a reliable, nuclear-capable ICBM that can be built in quantity, but there are still doubts about whether it can cross that threshold in a year.”

DPRK stands for North Korea’s official name, the Democratic People’s Republic of Korea.

A second U.S. official familiar with the science of ICBMs said, also on the condition of anonymity, that North Korea still has not demonstrated the ability to design and build nuclear warheads small enough to be delivered on its long-range missiles and tough enough to survive re-entry into the atmosphere.

A third official, who also spoke on condition of anonymity, said that even if Pyongyang develops a workable ICBM from its “tinker-toy mix of old Russian missiles,” it would pose a threat to the United States and its allies only if North Korean leader Kim Jong Un’s regime is suicidal.

The North has made no secret of its plans to develop a nuclear-tipped missile capable of striking the United States and has ignored calls to halt its weapons programs, even from its lone major ally, China. It says the programs, which contravene U.N. Security Council resolutions, are necessary to counter U.S. aggression.

Speaking in Beijing, Chinese Foreign Ministry spokesman Lu Kang said on Wednesday he was aware of the reports of a possible new North Korean missile test.

U.N. resolutions were clear when it came to North Korean missile launches and China opposed any move that ran counter to them, Lu told reporters.

“We hope all sides can bear in mind the broad situation of peace and stability on the Korean peninsula and exercise restraint,” he added.

(Reporting by Idrees Ali and John Walcott; Additional reporting by Ben Blanchard in Beijing; Editing by John Walcott and Nick Macfie)

U.S. says progress with China on N.Korea U.N. sanctions, true test is Russia

U.S. Ambassador to the United Nations Nikki Haley directs comments to the Russian delegation at the conclusion of a U.N. Security Council meeting to discuss the recent ballistic missile launch by North Korea at U.N. headquarters in New York.

By Michelle Nichols

UNITED NATIONS (Reuters) – The United States is making progress in talks with North Korean ally China on imposing new United Nations sanctions on Pyongyang over its latest missile test, but Russia’s engagement will be the “true test,” U.S. Ambassador to the U.N. Nikki Haley said on Tuesday.

The United States gave China a draft resolution nearly three weeks ago to impose stronger sanctions on North Korea over the July 4 missile launch. Haley had been aiming for a vote by the 15-member Security Council within weeks, senior diplomats said.

“We’re constantly in touch with China … Things are moving but it’s still too early to tell how far they’ll move,” Haley told reporters, adding that she was pleased with China’s initial response to the U.S. proposal because it showed “seriousness.”

“We know that China’s been sharing and negotiating with Russia, so as long as they are doing that, we’re going to continue to watch this closely to make sure it is a strong resolution,” she said.

China’s U.N. Ambassador Liu Jieyi told reporters: “We are making progress, it requires time, but we’re working very hard.”

Traditionally, the United States and China have negotiated sanctions on North Korea before formally involving other council members, though diplomats said Washington informally keeps Britain and France in the loop. Along with Russia, those five countries are veto-wielding Security Council members.

“The true test will be what (the Chinese) have worked out with Russia (and whether) Russia comes and tries to pull out of that,” said Haley.

The United States and Russia have waged rival campaigns at the Security Council over the type of ballistic missile fired by North Korea. Western powers have said it was an intercontinental ballistic missile (ICBM), while Russia said the missile fired was only medium-range.

Diplomats say China and Russia only view a long-range missile test or nuclear weapon test as a trigger for further possible U.N. sanctions.

“Everyone that we have dealt with acknowledges that it’s an ICBM. Whether they are willing to put it in writing or not is going to be the real question,” Haley said.

North Korea has been under U.N. sanctions since 2006 over its ballistic missile and nuclear programs and the Security Council has ratcheted up the measures in response to five nuclear weapons tests and two long-range missile launches.

President Donald Trump’s administration has been frustrated that China has not done more to rein in North Korea and senior officials have said Washington could impose new sanctions on Chinese firms doing business with Pyongyang.

When asked how long Washington was willing to negotiate with China at the United Nations before deciding to impose its own secondary sanctions, Haley said: “We’re making progress … We’re going to see what the situation is.”

“We want China and every other country to see it as serious and we’re going to keep moving forward that way,” she said.

China’s Ambassador to Washington Cui Tiankai said on Tuesday that Beijing objected to secondary sanctions. In June, the United States blacklisted two Chinese citizens and a shipping company for helping North Korea’s nuclear and missile programs.

“Such actions are unacceptable. They have severely impaired China-U.S. cooperation on the Korean nuclear issue, and give rise to more questions about the true intention of the U.S.,” he told the Institute for China-America Studies in Washington.

(Additional reporting by David Brunstrom in Washington; Editing by James Dalgleish)

House expected to approve Russia sanctions bill limiting Trump’s influence

U.S. President Donald Trump calls on Republican Senators to move forward and vote on a healthcare bill to replace the Affordable Care Act in the Blue Room of the White House in Washington, U.S., July 24, 2017. REUTERS/Joshua Roberts

By Amanda Becker and Patricia Zengerle

WASHINGTON (Reuters) – The U.S. House of Representatives is expected to vote overwhelmingly on Tuesday for a bill that would slap new sanctions on Russia, Iran and North Korea, potentially complicating President Donald Trump’s hopes of pursuing improved relations with Moscow.

The bipartisan measure aims to punish Russia for its 2014 annexation of Crimea from Ukraine and for alleged interference in the 2016 U.S. presidential election. The measure’s fate in the Senate is uncertain after a key senator said the deal announced over the weekend may not be final.

Republican Senator Bob Corker, chairman of the Senate Foreign Relations Committee, told reporters that deal negotiators had a “very good weekend” but the announcement “seemed somewhat premature.”

“We’re about there, there’s still some procedural issues we’re discussing but, you know, I think it worked out very, very well, we still got a couple of things to talk about on North Korea,” Corker said.

If the Republican-led Senate passes the measure, Trump will need to decide whether to sign the bill or veto it. Rejecting it would carry a risk that his veto could be overridden by lawmakers if they can muster enough support.

The Trump administration has objected to a provision in the sanctions bill that the president obtain congressional approval before easing any sanctions on Moscow.

“He’s going to study that legislation and see what the final product looks like,” White House spokeswoman Sarah Sanders told reporters on Monday when asked whether Trump would support it.

Trump’s relationship with Russia has been a focus of the first six months of his presidency as investigations continue into whether his associates colluded with Russian hackers to influence the election on his behalf.

Russia denies interfering in the U.S. election and Trump denies his campaign colluded with Moscow.

As the Republican-controlled House takes up the sanctions bill, Trump’s son-in-law, Jared Kushner, will visit Capitol Hill for a second straight day to be interviewed about his contacts with Russian officials during the 2016 campaign and the presidential transition.

An earlier version of the bill, including sanctions on Russia and Iran, passed the Senate 98-2 on June 15. A North Korea sanctions bill passed the House by 419-1 in May and House lawmakers were becoming increasingly impatient with the Senate’s failure to take up that legislation.

House members saw the Iran and Russia sanctions bill as a chance finally to get the North Korea measure through the Senate.

(Additional reporting by Steve Holland; Editing by Peter Cooney)

Iran’s Rouhani says new U.S. sanctions violate nuclear accord: state TV

FILE PHOTO: Iranian president Hassan Rouhani gestures during a news conference in Tehran, Iran, May 22, 2017. TIMA via REUTERS/Files

DUBAI (Reuters) – President Hassan Rouhani said on Wednesday new U.S. economic sanctions imposed against Iran contravened the country’s nuclear accord with world powers and he vowed that Tehran would “resist” them, state television reported.

The Trump administration slapped the new sanctions on Iran on Tuesday over its ballistic missile program and said Tehran’s “malign activities” in the Middle East undercut any “positive contributions” coming from the 2015 Iran nuclear accord.

“Some of the actions of the Americans are against the spirit and even the letter of the (nuclear accord). We shall resist these plans and actions,” Iranian state television quoted Rouhani as saying.

“One of the plots of the Americans is to act in such a way that would make Iran say that it is not following its commitments… I think the Americans will fail as we will always respect our international commitments,” Rouhani said.

Iran’s parliament agreed on Tuesday to discuss measures, including increased funding for the missile program, as retaliation for the new U.S. sanctions, state media reported.

The U.S. measures signal that the administration of President Donald Trump is seeking to put more pressure on Iran while keeping in place the agreement between Tehran and six world powers to curb its nuclear program in return for lifting international oil and financial sanctions.

The U.S. government said it was targeting 18 entities and people for supporting what it said was “illicit Iranian actors or transnational criminal activity.”

(Reporting by Dubai newsroom; Editing by Gareth Jones)

U.S. readies Venezuela sanctions, Maduro defies threat

Venezuela's President Nicolas Maduro (C) speaks during a meeting with members of the Defense Council of the Nation in Caracas, Venezuela July 18, 2017. Miraflores Palace/Handout via REUTERS

By Matt Spetalnick and Andrew Cawthorne

WASHINGTON/CARACAS (Reuters) – The Trump administration is preparing sanctions against several senior Venezuelan government figures, U.S. officials said on Tuesday, to pressure President Nicolas Maduro to abort plans for a controversial congress foes say would cement dictatorship.

The punitive measures could come against Defense Minister Vladimir Padrino Lopez and Socialist Party No. 2 Diosdado Cabello for alleged rights violations, the U.S. officials told Reuters, speaking on condition of anonymity.

Their comments followed President Donald Trump’s vow on Monday to take “strong and swift economic actions” if Maduro went ahead with the new body that would have power to rewrite Venezuela’s constitution and supersede all institutions.

“All options are on the table,” including possible measures

against Venezuela’s vital oil sector such as banning its crude imports to the United States, a senior Trump administration official told reporters on a conference call.

Washington is seeking to head off the July 30 vote for a Constituent Assembly that it sees as Maduro’s effort to create a “full dictatorship,” the administration official said.

The heightened U.S. rhetoric against Venezuela’s ruling Socialist Party has infuriated Maduro but also provided him with a nationalist rallying cry.

Decrying “imperialism” still resonates for many in a region scarred by Washington’s support of coups during the Cold War.

“No one gives Venezuela orders, no foreign government,” Maduro told a specially convened state security council to analyze the U.S. threats.

“Donald Trump is not the boss of Venezuela.”

PROTESTS GROW

Maduro vowed that the July 30 election would go ahead despite a boycott and escalating protests from a majority-backed Venezuelan opposition, and growing foreign condemnation from the European Union to major Latin American countries.

“The Constituent Assembly should be abandoned … The whole world is asking for that,” said Colombia’s President Juan Manuel Santos. In his speech, Maduro condemned him and Brazil’s President Michel Temer as “lackeys” of Washington.

The Trump administration’s possible sanctions on Venezuelan officials would freeze their U.S. assets and prohibit anyone in the United States from doing business with them.

Individual sanctions could come within days or else be delayed until after the July 30 vote, but no final decisions have been made and such actions could still be put on hold, one U.S. official told Reuters.

Tough oil-related sanctions could bankrupt the Maduro government and worsen grave food shortages in the crisis-hit OPEC nation. Hitting Venezuela’s energy sector could also raise U.S. domestic gasoline prices.

Venezuela is the third largest foreign oil supplier to the United States, after Canada and Saudi Arabia, exporting about 780,000 barrels per day of crude.

Polls show the ruling Socialists would be thrashed in any conventional election in Venezuela. A majority of people oppose the Constituent Assembly, which critics have said is a sham election skewed to give Maduro a majority.

He insists it is the only way to bring peace after months of anti-government unrest that has killed 100 people and further crippled the economy.

Maduro’s opponents said they drew 7.5 million people onto the streets at the weekend to vote in a symbolic referendum where 98 percent disagreed with the assembly.

Protesters blockaded parts of Caracas on Tuesday and a national strike was called for Thursday.

(Additional reporting by Diego Ore, Andreina Aponte, Corina Pons, Alexandra Ulmer and Girish Gupta in Caracas, Marianna Parraga in Houston, John Walcott, Patricia Zengerle and Ayesha Rascoe in Washington; Writing by Andrew Cawthorne and Alexandra Ulmer; Editing by Andrew Hay, Toni Reinhold)

U.S. puts new sanctions on Iran over ballistic missile program

FILE PHOTO: An Iranian national flag flutters during the opening ceremony of the 16th International Oil, Gas & Petrochemical Exhibition (IOGPE) in Tehran April 15, 2011. REUTERS/STR/File Photo

By Mohammad Zargham and Steve Holland

WASHINGTON (Reuters) – The United States unveiled new economic sanctions against Iran over its ballistic missile program on Tuesday and said it was deeply concerned about Tehran’s “malign activities” in the Middle East.

The measures signaled that the administration of President Donald Trump was seeking to put more pressure on Iran while keeping in place for now a 2015 agreement between Tehran and six world powers to curb its nuclear program in return for lifting international oil and financial sanctions.

The U.S. government said it was targeting 18 entities and people for supporting what is said was “illicit Iranian actors or transnational criminal activity.”

Those sanctioned had backed Iran’s military or Iran’s Islamic Revolutionary Guard Corps by developing drones and military equipment, producing and maintaining boats, and procuring electronic components, it said. Others had “orchestrated the theft of U.S. and Western software programs” sold to Iran’s government, the Treasury Department said.

On Monday, the Trump administration said that Iran was complying with the nuclear agreement but it was also in default of the spirit of the accord and Washington would look for ways to strengthen it.

It was the second time Trump certified Iranian compliance with the agreement since he took office in January, despite having described it as “the worst deal ever” during his 2016 election campaign, criticizing then-President Barack Obama whose administration negotiated the accord.

“The United States remains deeply concerned about Iran’s malign activities across the Middle East which undermine regional stability, security, and prosperity,” the State Department said in a statement.

It said the activities “undercut whatever ‘positive contributions’ to regional and international peace and security were intended to emerge” from the nuclear agreement.

The statement listed Iranian support for groups including Lebanon’s Hezbollah and the Palestinian Hamas movement, the Syrian government of President Bashar al-Assad and Houthi rebels in Yemen.

The Trump administration is reviewing policy on Iran, not only looking at Tehran’s compliance with the nuclear deal but also its behavior in the region which Washington says undermines U.S. interests in Syria, Iraq, Yemen and Lebanon.

There was no immediate response from Iran to Tuesday’s sanctions announcement. On Saturday, Iran blamed Trump’s “arbitrary and conflicting policies” for global security threats.

Trump’s reservations about the nuclear deal held up the White House’s announcement on compliance, a U.S. official said. In the end, Trump agreed reluctantly to recertify the agreement after being advised repeatedly by his top national security aides to do so, another senior U.S. official said.

“He sometimes, when he has to do something that he doesn’t really want to do but he knows that he has to do, or it’s the least bad of all the alternatives, he can be very recalcitrant about it. He lets his opinion be known,” the senior U.S. official told Reuters.

Behind the scenes, advisers argued that there was no alternative but to recertify the deal for now because the past sanctions regime the United States had with European allies against Iran is no longer in place and unilateral sanctions are not as effective as multi-lateral ones.

“If we simply get out of the deal the Europeans will no longer be with us,” the senior official said.

The State Department also called on the Iranian government to release U.S. citizens Baquer Namazi, Siamak Namazi, Xiyue Wang and other “unjustly detained U.S. citizens” and said it was deeply concerned about reports of their declining health.

“Iran should immediately release all of these U.S. citizens on humanitarian grounds,” the State Department said.

(Reporting by Mohammad Zargham and Steve Holland; additional reporting by Susan Heavey; Writing by Yara Bayoumy; Editing by Marguerita Choy and Grant McCool)

Defying Trump threat, Venezuela to press controversial congress

Venezuelan Foreign Minister Samuel Moncada talks to the media during a news conference in Caracas, Venezuela July 18, 2017. REUTERS/Marco Bello

By Andrew Cawthorne and Andreina Aponte

CARACAS (Reuters) – Venezuelan President Nicolas Maduro’s government on Tuesday vowed to proceed with plans for a controversial new congress despite what it called a “brutal interventionist” threat of U.S. economic sanctions.

President Donald Trump said on Monday he would take “strong and swift economic actions” if Maduro went ahead with the new body that would have power to rewrite Venezuela’s constitution and supersede other institutions.

Polls show a majority of Venezuelans oppose the assembly, which critics call tantamount to enshrining dictatorship in the South American OPEC nation. Maduro insists it is the only way to bring peace after months of anti-government unrest that has killed 100 people and further hurt a crippled economy.

Foreign Minister Samuel Moncada said the July 30 vote for the legislative super-body known as a Constituent Assembly would go ahead. “It is an act of political sovereignty by the Republic. Nothing and nobody can stop it,” he told reporters.

“Venezuelans are free and will unite against the insolent threat from a xenophobic and racist government … (and) the United States’ brutal interventionist efforts.”

Trump called Maduro, who narrowly won election in 2013 to replace the late Hugo Chavez, “a bad leader who dreams of becoming a dictator.”

Maduro’s opponents say they drew 7.5 million people onto the streets at the weekend to vote in a symbolic referendum where 98 percent disagreed with the assembly plan.

Calls to cancel the assembly and instead hold conventional elections have come from around the world, including the European Union and major Latin American nations.

The ruling Socialist Party would likely be thrashed in any normal vote due to widespread anger over economic hardships.

“WHOLE WORLD ASKING”

“The Constituent Assembly should be abandoned to achieve a negotiated, safe and peaceful solution in Venezuela. The whole world is asking for that,” Colombia’s President Juan Manuel Santos tweeted.

Venezuelan opposition supporters have been in the streets for nearly four months demanding a presidential election, freedom for several hundred jailed activists, independence for the National Assembly legislature, and foreign aid.

Protesters blocked roads in parts of Caracas on Tuesday.

Maduro insists opposition leaders are U.S. pawns intent on sabotaging the economy and bringing him down through violence as part of an international right-wing conspiracy.

Decrying “imperialism” still resonates for some in a region scarred by Washington’s support of coups during the Cold War. Sanctions from Trump, who is largely unpopular abroad, could actually help unite the ruling Socialists.

Senior White House officials told Reuters last month the Trump administration was considering sanctions on Venezuela’s vital energy sector, including state oil company PDVSA.

The idea of striking at the core of Venezuela’s economy, which relies on oil for some 95 percent of export revenues, has been discussed at high levels of the administration as part of a wide-ranging review of U.S. options.

But such an unprecedented step could deepen suffering for Venezuelans, already undergoing food shortages and soaring inflation during a fourth year of precipitous economic decline. It could also raise U.S. fuel prices, which would be unpopular with American consumers.

Venezuela is the third largest foreign oil supplier to the United States, after Canada and Saudi Arabia, exporting about 780,000 barrels per day of crude.

A senior Trump administration official said on Monday “all options are on the table” for Venezuela. Also under consideration are more measures against individuals, including senior officials, accused of rights violations, corruption or drug trafficking, the official said.

A Venezuelan opposition legislator who is vocal on economic policy said nobody wanted a U.S. oil embargo. “What Venezuelans want is for Maduro to stop the Constituent Assembly. Listen to the people!” tweeted Angel Alvarado.

(Additional reporting by Diego Ore, Alexandra Ulmer and Girish Gupta in Caracas, Marianna Parraga in Houston, Matt Spetalnick in Washington; Editing by David Gregorio)

Trump threatens sanctions if Venezuela creates Constituent Assembly

U.S. President Donald Trump speaks during a "Made in America" products showcase event at the White House in Washington, U.S., July 17, 2017. REUTERS/Carlos Barria

WASHINGTON (Reuters) – U.S. President Donald Trump threatened on Monday to take “strong and swift economic actions” if Venezuelan President Nicolas Maduro goes ahead with plans to create a super-legislature known as a Constituent Assembly in a July 30 vote.

“Yesterday, the Venezuelan people again made clear that they stand for democracy, freedom and rule of law. Yet their strong and courageous actions continue to be ignored by a bad leader who dreams of becoming a dictator,” Trump said in a statement issued by the White House.

“The United States will not stand by as Venezuela crumbles. If the Maduro regime imposes its Constituent Assembly on July 30, the United States will take strong and swift economic actions,” Trump said.

Maduro’s foes are demanding a presidential election and want to stop the leftist leader’s plan to create the Constituent Assembly, which would have the power to rewrite the constitution and annul the opposition-led legislature.

On Sunday, 98 percent of opposition supporters in an unofficial vote rejected the proposed assembly.

Maduro insists opposition leaders are U.S. pawns intent on sabotaging the economy and bringing him down through violence as part of an international right-wing conspiracy led by Washington and fanned by private domestic and foreign media.

Senior White House officials told Reuters last month the Trump administration was considering sanctions on Venezuela’s vital energy sector, including state oil company PDVSA, a major escalation in U.S. efforts to pressure the country’s government amid a crackdown on the opposition.

The idea of striking at the core of Venezuela’s economy, which relies on oil for some 95 percent of export revenues, has been discussed at high levels of the administration as part of a wide-ranging review of U.S. options.

The White House officials, speaking on condition of anonymity, told Reuters the United States could hit PDVSA as part of a “sectoral” sanctions package that would take aim at the OPEC nation’s entire energy industry for the first time.

They made clear the administration was moving cautiously, mindful that if such an unprecedented step was taken, it could deepen the country’s economic and social crisis, in which millions suffer food shortages and soaring inflation.

Another complicating factor would be the potential impact on oil shipments to the United States, for which Venezuela is the third largest oil supplier after Canada and Saudi Arabia. It accounted for 8 percent of U.S. oil imports in March, according to U.S. government figures.

(Reporting by David Alexander; Additional reporting by Girish Gupta in Caracas and Matt Spetalnick in Washington; Editing by Peter Cooney)